The Louisiana Attorney General’s Office should sue the Federal Emergency Management Agency to fight FEMA’s new flood insurance pricing system and shield homeowners from rate hikes, a resolution passed by state representatives says.
House Concurrent Resolution 58, authored by Rep. Jerome Zeringue (R-Houma), passed the House unanimously on May 16. The measure argues that FEMA’s new pricing methodology to obtain insurance through the National Flood Insurance Program will raise flood insurance rates statewide fourfold while allowing yearly double-digit increases in insurance rates.
Officials at the state Attorney General’s Office seemed ready to advance the lawmakers’ directive and file a civil lawsuit to protect the interests of Louisiana homeowners..
“We have prudently invested millions for flood protection and mitigation, and FEMA has ignored those investments,” state Solicitor General Liz Murrill said in a statement emailed to the Louisiana Record. “FEMA admitted its formula is flawed yet refuses to fix it. We intend to vigorously pursue all available remedies to protect hard-working Americans from FEMA’s efforts to force people into bankruptcy or foreclosure.”
Attorney General Jeff Landry, who is running for governor, also criticized FEMA for not responding adequately to insurance concerns expressed by numerous state officials.
“After listening to constituents, collecting evidence and determining the viability of litigation, we believe (FEMA’s) formula is arbitrary and capricious,” Landry said. “FEMA has ignored Congress and the states’ demands for transparency for too long, and our citizens deserve better from the feds.”
The resolution, which will now be considered in the state Senate, says the FEMA plan threatens not only to raise flood insurance rates but to harm the banking industry’s investments in private mortgages.
“The … flood insurance policies may lead many homeowners to file for bankruptcy or foreclosure … decrease the property value within this state, harm homeowners (and) decrease property tax revenues generated by this state, the levee boards and other state, local and parish-wide governmental entities,” the resolution says.